Travel has really become part of the vacast and there are so many drivers of it. So, we continue to be very bullish on travel and specifically for the CLEAR Plus business, people coming through airport security checkpoints. I also think, again going back to what I said to Josh of biometrics going mainstream, that travelers are showing up at airports with higher expectations. And I think you see a lot of new builds and new launches, Denver launched in new lane. You’re seeing new concessions. You’re seeing technology. That is really meeting the current customer expectations of what they have outside of airports. And I do think that the easier, the more friction-free, we can make the experience that airlines and airports can make the experience, the more you will see people travel.
Cory Carpenter: Thank you. And just a quick follow-up. Any color you’re able to provide on what the TSA enrollment in person cross rollout could look like from here now that you’re in New York and you have renewals online? Thank you.
Caryn Seidman-Becker: Oh, you mean PreCheck?
Cory Carpenter: Yes, PreCheck, sorry.
Caryn Seidman-Becker: Okay. Do you want to…?
Ken Cornick: Yes. So, the rollout plan from here is that we are going to add — we expect to add a few airports over the next coming weeks. And then roll out to the rest of the country throughout the year all subject to TSA approval.
Caryn Seidman-Becker: I will say on Newark, it’s incredibly exciting. We’ve obviously been talking about our excitement around TSA PreCheck enrollment provided by CLEAR for several years. If you go to Newark, you’ll see that we’re open seven days a week, 14 hours a day with multiple pods staffed by friendly CLEAR ambassadors. So, when you think of the capacity and the no appointment required and how this is really increasing enrollment accessibility for American travelers, the opportunity over time pending TSA approval to roll this out across the country is incredibly exciting and we are very encouraged by the early results, both online and at Newark.
Operator: Thank you. Our next question comes from the line of Ben Miller with Goldman Sachs. Please proceed with your question.
Ben Miller: Thanks for taking the questions. Maybe two if I can. First just on the retention being a little lower, it implies maybe the gross adds were better. So, any color you can share just on particular channel strength to call out either an airport or partner? And then, just on the guide, any color to quantify the impact from Easter shift on travel patterns and/or the — that’s implied in the guide? Thanks.
Ken Cornick: So, I’ll start with the guide. So generally speaking, we have a much higher backlog of retention in Q4 versus Q1. So, the sequential decline from Q4 to Q1 is totally typical. Last year we had a much larger benefit from a pricing perspective sequentially. So if you look at 2023, it was a very big year for pricing. We took price on basically every cohort. And so when you look at Q1 2023 versus Q2 — Q4 of 2022, we had the benefit of family airline channel and standard renewals. And so, if you back out that impact, you really have a much more similar sequential change from Q4 to Q1. So that’s what I would say about the guide. I don’t think — I don’t have a specific comment on Easter shift there. And then in terms of the channels, I think our teams performed extremely well in Q4, both in airport and some of the marketing channels.
You did see a sequential uptick in marketing spend. So we took some opportunities where we saw the ability to accelerate the gross adds from that perspective. So no specific channel of strength, but obviously just strong execution across the board in Q4.
Operator: Thank you. Our next question comes from Dana Telsey with Telsey Advisory Group.
Dana Telsey: Hi, Caryn and Ken. Nice to see the progress. As you talked about the experience and the enhancements that you’re making what are you doing? What should we see as we go through the year? Obviously, speed definitely one thing, but you also mentioned the new handheld devices. When will those be rolled out? And how are you looking at it? And then just for this year overall with TSA PreCheck are there any expenses that we should be mindful of as we go through the year for the model? Thank you.
Caryn Seidman-Becker : Ken can take the PreCheck data and then I’ll talk about the technology rollout this year.
Ken Cornick: So from a PreCheck perspective, we’ve talked about I think over the last probably eight quarters that we’ve been carrying expenses overhead for PreCheck and that’s why we’re so optimistic on our high incremental margins. One of the reasons for — in 2024, we are bullish on margin expansion is because we have been carrying a lot of overhead. So the incremental expenses you’d see from PreCheck really would be around staffing and we have been carrying some extra staffing as well. So I don’t — I wouldn’t say that you’re going to see anything meaningful certainly be marketing the product as well. But we do believe that PreCheck should lead to fairly high incremental margins.
Caryn Seidman-Becker: And in terms of the technology rollout Dana that you should see this year some of which I can talk about and some of which I can’t yet talk about, you will see new pods from CLEAR that are faced first pods. We’re calling them Envy, which is a combination of enrollment and verification. And they are faster. They are slimmer so we can have more and they are face first pods. And so that’s really important from a power of the camera capture things of that nature. From there the pods transmit digital identity to these handhelds and then it is a tap to transmit those digital identities into the TSA system. And so members will be face first fairly break stride and not have to take any IDs or boarding passes out of their pockets. There will remain always randomization from a security perspective. And so those things will really contribute to not only speed and efficiency, but member experience and security.
Dana Telsey: Thank you.
Operator: Thank you. Our next question comes from the line of Mark Kelley with Stifel. Please proceed with your question.
